Addresses: Department of Banking, Risk Management and Finance, University of South Africa, P.O. Box 392, UNISA, 0003, Pretoria, South Africa

Abstract: This study explored the determinants of human capital development in emerging markets using panel data analysis framework with data ranging from 1994 to 2014. The impact of human capital development on economic growth has been widely researched and is now a settled matter in economics and finance yet studies on the determinants of human capital development are still very scant. The question which remains unanswered is how can governments use human capital to enhance economic growth if they are unaware of what determines human capital development? The pooled ordinary least squares (OLS), fixed and random effects showed that economic growth, foreign direct investment (FDI), financial development, trade openness and infrastructural development had a significant positive influence or positive but insignificant impact on human capital development. Emerging markets are therefore urged to implement policies which enhance infrastructural development, financial development, trade openness and FDI in order to improve human capital development.